Apple is facing a fresh investigation by the European Union over alleged antitrust violations related to its App Store practices. The European Commission, headed by Margaret Vestager, has accused Apple of unfairly restricting competition in the music streaming market.
In particular, the Commission objects to Apple’s requirement that app developers use its in-house payment system, which charges a 30% commission on subscriptions, and its prohibition on app developers offering users out-of-app alternatives, Informs about affordable payment methods. (Fox Business) (TechExplore).
The investigation follows complaints from Spotify and other music streaming services, which argue that policies increase costs for consumers and limit their choices. Spotify welcomes the EU move, calling it an important step towards ensuring fair competition in the digital marketplace (MacRumors).
12 weeks to respond to the EU’s objections, and potential fines could reach 10% of its annual revenue, which amounts to $27.4 billion. The outcome of the case could have significant implications for Apple’s business practices and its relationship with app developers operating within the EU.
